Atlantic Council

From Judy Dempsey, the New York Times:  While the Moscow-Berlin political relationship gets a lot of attention, German companies have come to realize that the money to be made in Russia is overshadowed by the prospects even farther afield in China.

Germany is China’s biggest trading partner by far in Europe, and the trade is increasing by leaps and bounds, especially for high-value electrical and electronic goods. Germany’s car industry, which suffered greatly during the global financial meltdown, has recovered thanks in large part to a surge in Chinese demand for the top range of German cars — Bayerische Motoren Werke raised its 2010 forecasts on Tuesday for that very reason. ...

The new focus is evidenced by a trade mission being led by Chancellor Angela Merkel, starting Wednesday: For the first time, she is combining Russia and China in one trip — with energy-rich Kazakhstan thrown in for good measure. ...

Overall, German exports to China amounted to €36.5 billion, or $46.2 billion, last year, and imports totaled €55.5 billion, according to the German Federal Statistics Office. That was relatively unchanged from 2008, despite the economic crisis. By comparison, German trade with Russia fell 30 percent or more: imports were €24.9 billion while exports were €20.5 billion.

During the first four months of this year, German exports to China jumped nearly 50 percent over the same period in 2009, to €16.1 billion. That was spurred not only by China’s stimulus package but the shift in economic development. German exports to Russia were €7.1 billion, up around 25 percent. ...

Mrs. Merkel plans to spend two days in Russia, then Friday and Saturday in China, where she is to hold talks with President Hu Jintao and Premier Wen Jiabao. She is stopping Sunday in Kazakhstan on her way home. Accompanying her are representatives of 25 companies, including Martin Winterkorn, chairman of VW; Thomas Enders of Airbus; Peter Löscher of Siemens; and Eckhard Cordes, the head of Metro.  (photo: Getty)